Business councils useful to strengthen Singapore, China cooperation
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Bilateral business councils between Singapore and China have served as useful platforms to strengthen economic cooperation at the regional level, Singapore's Minister for Trade and Industry Lim Hng Kiang said on Monday.
In a written answer to questions at the Singapore parliament, Lim said that the business councils are established in provinces where Singapore companies have strong business interest.
Singapore and China have set up seven bilateral business councils in China, in the provinces of Shandong, Sichuan, Liaoning, Zhejiang, Tianjin, Jiangsu and Guangdong.
"China is a huge country. To understand China, its market dynamics and people in charge, we need to create both formal and informal opportunities to interact and learn from its leaders. In this regard, the councils provide an effective platform for leaders of both sides to engage and get to know each other. The resulting goodwill, trust and personal relationship will be helpful for future cooperation." Lim said.
Council meetings, usually convened annually, review the progress of bilateral trade and investment projects, and explore new areas for collaboration. Council members include representatives from government agencies and private sector from both sides. Apart from the annual meeting, secretariats of the councils also organize mutual visits, trade and investment missions, industry roundtables and investment promotion seminars throughout the year to promote economic linkages between Singapore and the provinces.
"These activities provide our companies with business matching and networking opportunities, and update our businessmen on the latest industry trends in different regions of China." Lim added.
He said that the councils have achieved notable success in facilitating small-and-medium enterprises (SMEs)' entry into China, and also in the conception of large scale projects in China. They have also played facilitative roles in securing access to opportunities for Singapore firms.
The business or cooperation councils also help raise the profile of Singapore as a destination for investment, listing and regional headquarter. Through the work of the councils, increasing number of Chinese companies are starting up operations in Singapore as they internationalize, he added.
According to data from Singapore's Ministry of Trade and Industry, in 2009, China was Singapore's third largest trading partner, while Singapore was China's 8th largest trading partner. Bilateral trade recorded a healthy 75.7 billion Singapore dollars (about 55 billion U.S. dollars) in 2009, despite the impact of the global economic crisis. China was also the top investment destination for Singapore companies, which invested a cumulative 41.4 billion U.S. dollars as of end 2009.
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